Liquidation — Glossary

◈Definition

Liquidation is the formal winding up of a company — appointment of a liquidator, realisation of the company's assets, settlement of its liabilities in order of priority, and distribution of any surplus to shareholders. It can be voluntary (member-initiated) or compulsory (creditor- or court-initiated, often under the Insolvency and Bankruptcy Code 2016). Companies in liquidation are flagged 'Under Liquidation' in MCA master data.

◉See also

Amalgamation
The merger of two or more companies into a single surviving entity.
Strike-off
The removal of a company's name from the Register of Companies.

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Part of the CorpIntel glossary, a 45-term reference. Found an error? Corrections policy.